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MMX says .vip renewals to be at 70%+

MMX believes the biggest money-spinner in its new gTLD portfolio, .vip, will see first-year renewals in excess of 70%.

The company said this morning that it is projecting renewals towards the top end of industry norms based on manual renewals to date.

.vip was a bit of a hit in China, topping a quarter-million domains in its first month of general availability a year ago. It peaked at around 750,000 domains a month ago.

MMX said in a statement:

To date, actual deletions for the first 31 days of registrations for .vip from China are currently less than 1%, with manually confirmed renewals for the same period already at over 60%, with the remainder being placed on auto-renew by registrars on behalf of their customers.

Whilst not all of those placed on auto-renew will be renewed, MMX expects the overall renewal rate for the first month of .vip registrations, which will be published in late July, to place .vip in-line with the best-in-class renewal rates of leading western facing top-level domains (i.e. c. 70% and above).

While MMX has made much of the fact that it has not sold .vip names for almost nothing, unlike some competitors, they’re still pretty cheap in China.

.vip names sell for the CNY equivalent of $3 to $4 at the major Chinese registrars. GoDaddy prices them at $20.

CEO Toby Hall said that there had been some volume-based discounts available to registrars, but “nothing which took the pricing below our general availability pricing”.

Its actual renewal rate will become clear at the end of July, MMX said.

Rightside new gTLD renewals can top 80%

Kevin Murphy, October 14, 2016, Domain Registries

Rightside says it is seeing encouraging renewal figures from its oldest batch of new gTLDs.

The company this week revealed that renewals after two years of ownership on average stand at 81%.

In a blog post, Rightside broke out some numbers for .dance, .democrat, .ninja, .immobilien, .social, .reviews and .futbol.

Those seven are the only ones in its portfolio to have gone through two full renewal cycles.

The renewal rate after year one was a modest 69% — in other words it lost almost a third of its installed base after 12 months — but this increased to 81% after the second year.

The actual number of domains involved in quite tiny — 81% equates to just 21,000 names across all seven TLDs.

Breaking out a couple of TLDs, Rightside wrote:

Our first gTLD to market, .DANCE, saw a 70% renewal rate in year one expand to 83% in year two for that same subset of domains. Our best performing gTLD of the seven is .IMMOBILIEN, which renewed at 83% in its first year, and grew to a stupendous 87% in its second—which certainly makes sense given the permanent nature of real estate.

But Rightside reckons the numbers reflect well on the new gTLD industry. It said:

domain investors with portfolios including new gTLDs recognize the long-term value of these domain names, and rather than let them drop after the first year, are holding onto them to find the right buyer continue to earn parking revenue. Second—and likely the more significant driver—is that end users are actually picking up these domain names and putting them to use.

West.cn to prop up .xyz renewals with $1.5 million subsidy

Leading Chinese registrar West.cn has said it will subsidize .xyz renewals to the tune of $1.5 million.

According to a West.cn press release, CEO He Xiaojiang made the announcement alongside XYZ.com counterpart Daniel Negari at meeting in Beijing on Friday.

The registrar’s .xyz customers “are going to get high rebate back from West.cn so that they can get very low renewal fees”, according to a translation of the original Chinese.

The subsidized renewal price, which starts in June, will be RMB 18 ($2.73), according to the company.

That’s about a $7 discount on West.cn’s usual renewal price of RMB 64.

First-year .xyz prices at the registrar are currently RMB 8 ($1.22).

West.cn is believed to have well over a million .xyz domains on its books. With over a third market share, it’s XYZ.com’s biggest registrar.

The press release points out that West.cn is not getting a special rate from XYZ (which would be against ICANN rules).

Negari declined to elaborate on the specifics of the subsidy.

But in what is no doubt a related move, he told DomainInvesting.com yesterday that XYZ has “reserved several million dollars to be spent with registrars and on advertising platforms for our 2 year anniversary”.

This ad spend will be made over the month of June, he said, to coincide with the June 2, 2014 general availability launch of .xyz.

Fifty registrars are participating, he said, calling it the “biggest sale” the industry has seen.

Whether through heavily discounted renewals or bargain first-year regs, it seems the company is set on making sure its DUM volume does not dip as its anniversary approaches.

It’s not unusual for registries to do special offers to coincide with launch birthdays.

.xyz currently has about 2.8 million registered domains, but about 1.8 million of those were registered after June 2015 and are not in need of renewal before the promotion period expires (though registrants can of course renew whenever they like).

Rightside offers $10 renewals on premium names

Rightside is to run a promotion that will discount renewals on premium names down to .com prices.

From May 16 to June 30, if you buy any of the domains that Rightside has marked as premium — except the super-premium “Platinum” names — the wholesale renewal fee will be just $10.

Registrars will mark this up according to their own pricing models.

Normally, the price you pay at the checkout is the price you pay every year after that.

The deal is overtly targeted at domainers.

Rightside said: “At these reduced prices, you’ll have more time to find the right buyer for any domains you register, and incur lower fees to transfer to them once you do. If you’re looking to add high-quality domains to your portfolio, this will be the time to do it.”

The reduced renewals only apply to names registered during the six-week window, but they do pass on to subsequent registrants if the domain is sold.

Rightside is calling it a “first-of-its-kind” promo, but in reality it’s just a temporary regression to the once-standard industry model.

Remember, prior to the 2012-round gTLDs, only exceptions like .tv charged premium rates for renewals.

Premium renewals are now very commonplace, but are by no means the rule, in the new gTLD industry.

For Rightside, the offer means the company may experience a brief cash windfall as domainers, who generally hate premium renewals, take a chance on the registry’s names.

There’s also a potential marketing benefit to be gained from having more domainers on board as unpaid salespeople.

But it does rather suggest the premiums are not flying off the shelves at the rate Rightside wants.

The company recently disclosed that in the first few months of the year it made revenue of $674,610 selling 1,820 premium names, leading to an average price of $372. Twelve five-figure names had been sold.

Over its portfolio of 39 gTLDs, Rightside has flagged over 964,000 as premium, or about 25,000 per TLD.

.guru renewals at 63%

Ten days into its series of renewal rate disclosures, Donuts has revealed that .guru’s rate currently stands at 63.4%.

In a blog post yesterday, COO Richard Tindal said that the registry’s overall renewal figure for the first 81,569 domains it sold was 68.4%.

The other two large TLDs in the batch — .photography and .clothing — came in at 75.7% and 74.0%, respectively.

.guru was the first new gTLD to launch in English that did not refer to a specific niche vertical. As such, it took the lion’s share of the early new gTLD speculation money.

We’re looking at a typical junk drop, in other words.

Over 10,000 names have been deleted from the .guru zone file since it peaked at over 80,000 names on February 28, as this DI PRO chart shows.

Tindal wrote that he expects the numbers to improve over time:

In March and April we expect the cumulative rate on all Donuts names to stabilize around 70%, and then trend upwards toward 80% as the average age of registrations increases and the proportion of names with website content continues to grow.

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